At first, I thought "Download-Only? Neat!"
Then I thought "Download-Only? Well, those without ethernet are fucked."
Then I thought "Oh, SD Cards, DERP!"
Personally, I'm hoping Microsoft doesn't bother with any sort of hard-assed DRM. That would just be stupid.
Still, though, I find it amusing that the X-Box 3 games are going to come as tiny little cards. And they're going to plug into a system that is probably not going to be that tiny.